Morgan Stanley's Profit Jumps 32% On Dealmaking

Morgan Stanley's third-quarter profit surged 32%, fueled by a rebound in dealmaking that had also buoyed its rivals, sending its shares up 3% before the market opened, Manya Saini and Niket Nishant reported for Reuters.

Morgan Stanley's investment banking revenue jumped 56% in the third quarter. I Photo: Wally Gobetz Flickr

The investment bank posted a profit of $3.19 billion on Wednesday, or $1.88 per share, for the three months ended September 30.

That compares with $2.41 billion, or $1.38 per share, a year earlier. A revival in corporate debt issuance, initial public offerings, and mergers have bolstered profits for investment banks this year.

Morgan Stanley's investment banking revenue jumped 56% in the third quarter. Its competitors, Goldman Sachs, posted a 20% surge in fees, while JPMorgan Chase saw a 31% gain.

As markets hover near record highs and the US Federal Reserve begins its policy-easing cycle, bankers expressed optimism that M&A activity will continue to recover after a two-year drought.

"The firm reported a strong third quarter in a constructive environment across our global footprint," CEO Ted Pick said, according to a report by Tatiana Bautzer for Reuters.